On January 1, 2016, Martini, Inc. acquired a machine for $1,050,000. The estimated

$670,000

Explanation:

For computing the book value, first we have to determine the depreciation expense using the straight line method which is shown below:

= (Original cost - residual value) ÷ (estimated useful life)

= ($1,050,000 - $100,000) ÷ (5 years)

= ($950,000) ÷ (5 years)  

= $190,000

In this method, the depreciation is same for all the remaining useful life

Now the book value is

= Original cost - depreciation expense × number of years

= $1,050,000 - $190,000 × 2

= $1,050,000 - $380,000

= $670,000

gracias for los puntos

Explanation: